129 Interactions, 2 Today
Bank of Communications and China Construction Bank are collaborating with fund managers and insurers to enable Chinese citizens to make e-yuan payments.
According to reports, government-backed Chinese banks have begun investigating additional applications for the digital yuan, such as allowing citizens to use it to purchase insurance and investment funds online.
The South China Morning Post reported on Tuesday that leading Chinese banks such as Bank of Communications (Bocom) and China Construction Bank (CCB) are working with fund managers and insurers to enable e-yuan payments for sectors beyond the retail landscape.
According to the article, CCB has partnered with an investment funds platform, Shanghai Tiantian Fund Distribution, to allow individuals to make online fund investments using digital yuan, and JD.com, a China-based e-commerce company, will also be a part of this collaboration. Zhang Min, executive vice president of CCB, stated:
“We have since 2017 been participating in the research and development of the central bank digital currency, which we view as significant for our payment system due to its ability to enhance payment efficiency.”
According to reports, CCB has opened a total of 8.42 million e-yuan wallets for 7.23 million individual users and 1.19 million businesses. According to Qian Bin, executive vice president of Bocom, the bank is actively investigating several use cases for the e-yuan in fund management and insurance.
State-backed banks’ efforts go beyond the original plan of the central bank digital currency established by China’s central bank, which was intended to power primarily the low-value, daily retail payments environment.
Despite China’s active efforts to mainstream the digital yuan, the government has been adamant about prohibiting the usage of Bitcoin (BTC) and other digital currencies within its borders.
Yin Youping, deputy director of the People’s Bank of China’s Financial Consumer Rights Protection Bureau, has claimed that the government plans to maintain a “high-pressure environment” on cryptocurrency transactions.
Furthermore, as the crackdown continues, Chinese Bitcoin miners from Yingjiang County have been delisted from the local electricity grids.